Tag: rates

“Both the previous two U.S. recessions overlapped with stock market sell-offs” reports thebusinessjournal.com. (AP) — Fears of a recession have been mounting with the U.S. stock market appearing to be headed for its worst December since 1931 — during the Great Depression.The fact is that the stock market captures just a piece of the broader U.S. economy.The fact is that economic growth around the world is slowing, including in the United States as the benefits from the tax cuts wane. Source: thebusinessjournal.com Share This:

“Oil prices have had a rollercoaster couple of years, so a surge or sudden drop in the price of crude could pose problems for the world economy” writes Nils Pratley Financial for theguardian.com. Added into the mix is the risk that Trump’s trade war with China could escalate with damaging consequences for the world economy.Global growth is forecast to plateau, while some major nations including the US and China are on track to see slower rates of growth.Besides the risks from Brexit, the US-China trade war and the Fed aggressively…

“Wall Street concerns about “unforeseen consequences” from another Federal Reserve interest rate hike were keeping a lid on Tuesday’s stock market rebound, according to veteran trader Art Cashin” writes Berkeley Lovelace Jr for cnbc.com. The market expects a more scaled-back rate path Wednesday.Against the backdrop of higher rates, investors are “very nervous” about global economic growth slowing and uncertainty around the U.S. trade war with China, said the UBS director of floor operations at the New York Stock Exchange.Cashin said there are several investors on the sidelines ahead of the…

“On Tuesday, the Energy Information Administration said U.S. shale oil production will keep climbing in January, and the Wall Street Journal reported that oil production in Russia reached a record high in December” writes Marley Jay for seattletimes.com. NEW YORK (AP) — U.S. stocks are broadly lower Tuesday afternoon, and energy companies are falling after the price of crude oil plunged another 7 percent.The companies have taken huge losses this year as rising mortgage rates and prices have reduced home sales.Higher rates can slow economic growth, something investors are already…

“The blonde-haired elephant in the room when it comes to the Fed decision is President Donald Trump’s continued insistence upon criticizing the Fed” writes Joe Ciolli for businessinsider.com. They’ll devour any bit of guidance from Powell and his colleagues for any hint of what’s ahead for interest rates.If the central bank signals too much future monetary tightening for the market’s tastes, the 10-year bull market could meet its demise.A big part of that stems from the turbulence that’s rocked the stock market in recent weeks.Read more:We just got the most…

“The National Association of Home Builders/Wells Fargo Housing Market Index fell in December after a decline in November” writes Rebecca Ungarino for businessinsider.com. The decline in confidence, according to the NAHB, was due largely to housing affordability.Market strategists are convinced some recent economic indicators, including this confidence measure, are going to play a role in the Federal Reserve’s commentary this week.Optimism among US homebuilders fell for a second straight month, and some say that’s a troubling sign for the economy and the stock market — particularly ahead of the Federal…

“In what has been a turbulent month for U.S. stocks, the market has more often than not failed to build on an uptick in early trading” reports businessinsider.com. On Monday, President Donald Trump as well as Gundlach, known on Wall Street as the bond king, both said the Fed should not raise rates this week. Source: businessinsider.com Share This:

“The yield on the benchmark 10-year Treasury note sank to 2.826 percent while the yield on the 30-year Treasury bond dropped to 3.082 percent” writes Ryan Browne for cnbc.com. The big news for traders this week is the Federal Open Market Committee’s (FOMC) upcoming meeting, where the central bank will set interest rates. The central bank is widely expected to hike rates on Wednesday, however expectations for further rate hikes in 2019 have dampened amid concerns of a potential slowdown in economic growth.Stocks have suffered wild bouts of volatility as…

“This effectively tilts the playing field against emerging markets by boosting demand for dollars at the expense of other currencies” writes Midwest Communications Inc for 95kqds.com. The campaign, however, came at the cost of slower growth for the trillion dollar economy.The central bank acknowledges its influence extends beyond U.S. borders, but argues it is bound by a mandate of containing inflation and seeking maximum employment at home.Capital outflows from emerging markets in favor of relatively higher-yielding U.S. assets and the strengthening dollar intensified around April. Source: 95kqds.com Share This: